'Crackdown on illicit brew to cost Kenya Sh50 billion'

Naivasha MP John Kihagi (R) in a heated argument with the CEO Keroche Breweries Tabitha Karanja and the MD Muigai Karanja during a tour of the company as part of the ongoing crackdown on second generation brews. [PHOTO/Antony Gitonga/STANDARD]

The ongoing war against second generation alcoholic drinks could back fire on the State, a Kenya Revenue Authority (KRA) manager has said.

The officer, who declined to be named said the sector was one of the leading in terms of tax returns warning that the Government stood to lose over Sh50 billion.

Speaking in Naivasha, the officer noted that major players like East African Breweries Limited, Kenya Wine Agencies Limited and Keroche Breweries were already crying foul over the crackdown.

“Already these companies are not supplying their products to Central Kenya due to the ongoing crackdown and this will definitely affect their returns,” said the officer.

“It’s not only the brewers who are feeling the effects but bottle manufacturers and those involved in manufacturing other packaging materials like little bottle tops and cartons,” the officer added.

The officer said the sector contributed billions of shillings to the exchequer every year, adding that the move to suspend their activities was misadvised.

“It’s true illicit brews are killing our people but it was wrong to go for licenced investors who have legal documents from the same Government that is directing their closure,” said the officer.

And in the Naivasha based Keroche Breweries, operations resumed after two days of anxiety, threats and intimidation. Officers from the Kenya Bureau of Standards, who were expected to tour the factory and inspect some of the products, failed to turn up as expected.

Keroche Chief Executive Officer Tabitha Karanja said her products met all the set standards and accused her competitors for waging a war against the brewery. Ms Karanja questioned the rationale used to allow MPs to lead the crackdown.